Monthly Archives October 2015

John key Denies Sugar Tax

October 19, 2015 New Zealand Taxation

The government will rely on education programmes and exercise instead of taxing people in order to help fight obesity.

Early on October 18th the Prime Minister of New Zealand John Key claimed that the government would not be implementing a tax on the sale of sugary drinks.

The Prime Minister said that obesity has now overtaken smoking as the leading health concerns in the country.

However, while he also acknowledged that sugar has been proven to have links to obesity, but he also added that “…the problem with sugar tax is: So you put a sugar tax on fizzy drinks fair enough, OK. But what about everything else sugar is in?”

The government is expected to release its anti-obesity plan soon, which will detail the steps the government will take in its effort help reduce waistlines across the...

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Tax Adviser Sentenced for Tax Fraud

October 15, 2015 New Zealand Taxation

A tax adviser has been sentenced for a tax evasion scheme involving fictitious property sales and a series of fake businesses and invoices.

On October 14th the Inland Revenue Department issued a statement announcing that a tax advisor from the Lower Hutt who has been accused of tax evasion has now been sentenced to 10 months home detention for his actions.

The adviser, Patrick John Renshaw, pleaded guilty to 42 separate charges involving the non-payment of PAYE, and for filing false GST and income tax returns, which cumulatively amounted to tax evasion of approximately NZD 345 thousand.

Patrick John Renshaw constructed a web of fictitious transactions between a series of related entities, which were invoiced but with no payment or service actually taking place, ultimately allowing the en...

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NZ Super Fund Seeks New Zealand Investments

October 7, 2015 New Zealand Finance

The New Zealand Super Fund is looking for new local investment, but has trouble finding new opportunities which meet its requirements.

The New Zealand Super Fund is actively looking for more New Zealand investments, according to comments made by the Chief Executive Adrian Orr at the release of the Fund’s annual report.

The New Zealand Super Fund currently has a total of NZD 4.4 billion in investments in New Zealand, out of a total investment portfolio of NZD 29.54 billion.

The current domestic investment level of NZD 4.4 billion is higher than in 2014 when the investments were only NZD 3.7 billion.

While the Fund is looking for new domestic investment opportunities, it was also noted that there are not many opportunities for investment that meet the requirements for scale and return.

Ho...

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Economic Growth Softens in New Zealand

October 6, 2015 New Zealand Finance

Weakening economic conditions in New Zealand and around the world have led to a slow down in economic growth over the course of 2015.

Economic growth in New Zealand over the June quarter has been lower than expected, with GDP growth only reaching 0.4 percent, according to a new statement issued on October 6th by the Treasury of New Zealand.

The weak GDP growth has been attributed to a slow-down in underlying economic activity, being further reflected in rising unemployment rates and weak levels of inflation in non-tradables.

The 0.4 percent GDP growth follows a GDP growth of only 0.2 percent in the March quarter.

Looking forward to the rest of 2015, the Treasury expects that over the rest of the year the GDP growth will be approximately 0...

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